Michael Barone of US News and World Report gives a lesson on the problems with big government liberalism that Senator Obama and the Democrats are planning to implement upon taking control of the legislative and executive branches of government in his article, Obama’s New Deal No Better Than Old One. The policies of increased taxes, ’spread the wealth’ economics, and government based social engineering have historically caused economic down turns, as indicated by Michael Barone.
Obama seems determined to follow policies better suited to freezing the economy in place than to promoting economic growth. Higher taxes on high earners, for one. He told Charlie Gibson he would raise capital gains taxes even if that reduced revenue: less wealth to spread around, but at least the rich wouldn’t have it — reminiscent of the Puritan sumptuary laws that prohibited the wearing of silk. Moves toward protectionism like Hoover’s (Roosevelt had the good sense to promote free trade). National health insurance that threatens to lead to rationing and to stifle innovation. Promoting unionization by abolishing secret ballot union elections.
The impulse to social engineering is unmistakable. Government officials will allocate resources, redistribute income, and ration good and services. Use government stakes in banks, insurance companies and Detroit auto manufacturers to maintain the position of those already in place, at the cost of preventing the emergence of new enterprises that might have been spawned by the capital being allocated.
Filed under: Economy, Obama, Politics | Tagged: big government, big government liberal, liberal elite, obama liberal, obama liberal elite, obama liberalism
Cheap-labor conservatives sweet-talk red state voters with a small government because big business wants the economy safe for their economic pillage. An effective government would mean environmental controls, labor protections, progressive taxes, health care and market regulations. I also bet small government appeals to red state voters who would love revenge on the government that took away their slaves and forced racial integration upon them.
Lincoln was a Republican!
If tax policies and government mandates on businesses (health care provision, environmental requirements), grow too burdensome for private enterprises to earn a profit, business owners will simply shut their doors, take their money, and go elsewhere. Businesses are not required to provide jobs, but are required to earn a net profit for their investors. If the only jobs left are in government, then eventually, no one will vote against big government or additional government spending because everyone will be dependent on the government. Don’t assume that business owners have to stand and take it! There are lots of alternatives in the world today.